The North Carolina Department of Environmental Quality’s (DEQ) State Energy Office (SEO) is requesting applications for distribution of the North Carolina State Energy Program (SEP) award. The funding for this program was awarded to SEO by the United States Department of Energy (DOE). This funding is to be distributed throughout the state of North Carolina for the purpose of supporting building energy assessments, energy audits, and building upgrades.
Scope of work
Due to the limited funding available through this RFP and the limited amount of time to complete projects, the SEO has selected Energy Efficiency Activities as the focus, prioritizing energy building upgrades. The key focus area includes energy-efficiency improvements. In addition to energy-efficiency improvements, building energy assessments and energy audits are recommended but not required. The high-level activity outlined below provides suggested steps and serves as examples of shovel-ready, high-impact projects and programs that align with the focus of this program.
Projects must address the key focus area outlined but may address other areas while maintaining a cohesive project scope. Going beyond the key energy efficiency activity may trigger additional reviews of your SEP project to ensure you are meeting NEPA, historic preservation, and/or other federal regulations. Detailed information and ideas for project scopes being solicited under this RFP are listed in the focus area below.
Focus Area: Building Upgrades
Under this key activity the entity will select, and conduct upgrades identified through energy audits which were conducted prior to this solicitation or audits that will be conducted upon award from this RFP. Audit results are thoroughly evaluated, and potential benefits of implemented upgrades are observed to determine if upgrades can be implemented immediately or require further study. Potential projects that may be funded include but are not limited to: 1) Comprehensive upgrades – typically involving efficiency measures in two or more building systems (e.g., lighting, building envelope, HVAC) with one building-wide energy savings goal, 3) electrification enabling grid-interactivity (e.g., demand response), 4) onsite renewables (solar, hydropower, geothermal) and battery storage for resilience benefits, 5) retro-commissioning, and 6) a blend of projects with both high and low return on investment to optimize the bundle of measures balancing deferred maintenance needs, energy savings and financial goals.
The project period for this subgrant must conclude no later than June 30, 2027. While every attempt will be made to award funding earlier, applicants should keep in mind that funding likely will not be awarded until the first quarter of 2027 when creating their project timelines. This is due to the timeline of state and federal processes. More information on award timelines will be shared with entities selected for funding and as it becomes available.
Funding source and amount
North Carolina has been awarded SEP funding from DOE for the purpose of encouraging energy efficiency throughout the state. Approximately $1,400,000 of the funding will be put toward subgrant distribution under this RFP. The project proposal range for this RFP is $50,000 to $200,000. This will ensure that projects are of a sufficient scope to address the purpose of this grant, that a reasonable number of projects receive funding and that all projects fall under the “Small Grants Waiver’ for the Build America, Buy America Act (BABA) compliance.
Prioritization of funding awards
Funding is able to be awarded to all eligible entities listed below. Priority will be given to entities with prior energy audits completed which show the potential benefits of implementing upgrades identified for funding under the RFP.
Eligible entities
Eligible entities include North Carolina towns, cities, counties, state agencies, universities, community colleges, K-12 schools, nonprofits, businesses, and industrial entities. All eligible entities are strongly encouraged to apply regardless of prioritization status.